World Markets Steady in Search of Recovery Signals

An investor yawns as he looks at a stock price monitor at a private securities company Tuesday Sept....

An investor yawns as he looks at a stock price monitor at a private securities company Tuesday Sept. 15, 2009, 2009 in Shanghai, China. Chinese shares rose for a third successive day Tuesday on the country's economic revival hope, led by metal shares. The benchmark Shanghai Composite Index edged up 6.99 points, or 0.2 percent, to close at 3,033.73. (AP Photo/Eugene Hoshiko)

(AP)

European and Asian markets were steady Tuesday while Wall Street was expected to edge down on the open as investors looked ahead to economic indicators for clearer signs of a global recovery.

Germany's DAX was down 0.2 percent at 5,609.19 and Britain's FTSE 100 was up 0.2 percent to 5,028.60. France's CAC-40 rose 0.2 percent to 3,737.37.

Asian markets closed mostly higher, while U.S. indexes were expected to dip on the open. Dow industrials futures were 5 points lower at 9,545.00 and Standard & Poor's 500 futures fell 0.20 points to 1,043.30.

Markets have recovered impressively in the 12 months since the collapse of U.S. investment bank Lehman Brothers, which triggered the sharpest phase in the world's biggest financial crisis in 70 years — but the mood has become one of caution as the pace of recovery remains shrouded in doubt and some fear stocks have reached the peak of their valuations.

After volatile trading Monday, markets stabilized on hopes that a brewing U.S.-Chinese trade dispute would not escalate into a full-out trade war.

On Tuesday, investors were looking to a raft of economic data in Europe and the U.S. for more direction and confirmation that equity prices were not overvalued after rallying in recent months.

U.S. retail sales loomed largest, with analysts forecasting a 2 percent increase in August. Excluding auto sales, which have been boosted by state incentives, they only expect a 0.4 percent rise, according to a survey by Thomson Reuters.

Mitul Kotecha, analyst at Calyon, was gloomy about the data and prospects for a quick resurgence in American economic activity.

"The fact that much of the gain in sales will be attributable to the 'cash for clunkers' program suggests that markets will not take the jump in sales as a sign that the U.S. consumer is healthy again."

Considering that consumer spending accounts for 70 percent of the U.S. economy and 20 percent of the world economy, its outlook is crucial for an improvement in market sentiment.